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| Sangeetha Mobiles acquires Wavetel |
| BS Reporter / Chennai Feb 24, 2010, 00:07 IST |
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Bangalore-based mobile retailer Sangeetha Mobile has acquired Wavetel Mobiles, a mobile retail chain in Tamil Nadu, for around Rs 13 crore.
Speaking to reporters here on Tuesday, L Subhash Chandra, managing director, Sangeetha Mobiles, said the acquisition was part of company’s growth plans. Sangeetha Mobiles currently has around 100 stores across Andhra Pradesh, Karnataka and Tamil Nadu.
“We had set a target of Rs 500 crore turnover for the current financial year and Rs 1,000 crore for the next fiscal,” said Chandra.
Wavetel would continue to maintain its independent identity and pursue its growth plans, he said. Currently, the company has 21 showrooms in Tamil Nadu and is planning to increase it to 100 over the next 12 months.
“In 2008-09, the retail chain clocked a turnover of Rs 100 crore and has set a target of Rs 360 crore over the two years,” added John Yesudas, founder, Wavetel Mobiles, who will continue as chief executive officer for Tamil Nadu in the new entity.
The company reported a 30 drop in its turnover last year due to recession, he said, adding “Ninety per cent of company’s sales comes from the corporate segment, predominately from the IT industry. Our expansion plan was hit. We then started looking for partners.”
Wavetel Mobiles has a market share of around 30 per cent in Tamil Nadu. The retail brand would continue to focus only on Tamil Nadu.
Chandra said the company has appointed a consultant for the proposed expansion. It would look at private equity to fund the expansion among others.
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